**Mexico City**: Over 54% of CEOs from BMV-listed companies signal growing unease due to volatile political and commercial conditions, with nearly 36% worried about upcoming US tariffs. Consumer spending declines and rising costs add to the cautious corporate outlook for 2025.
A recent assessment of the corporate performance of 42 companies listed on the Bolsa Mexicana de Valores (BMV) reveals that 54.8% of CEOs are expressing concerns regarding the impact of ongoing uncertainty on their businesses. This figure highlights a growing apprehension among corporate leaders about economic conditions and trade dynamics, particularly between the United States and its economic partners, with Mexico being a focal point.
Enrique Beltranena, CEO of Volaris, remarked during a recent investor results presentation that over the past three months, the political and commercial climate has been marked by volatility. He noted that this erratic environment has contributed to considerable uncertainty within various industries and among consumers, fostering a more cautious outlook.
Andrés Pliego, Chief Financial Officer and Vice President of Finance and Administration at Rotoplas, further emphasised that the first quarter was characterised by a significant degree of unpredictability regarding potential tariffs, which led to a slight decline in total sales. He attributed this downturn primarily to a slower start in their main business operations in Mexico.
Additionally, a significant portion of executives—40.5%—reported that consumer spending has weakened, reflecting broader economic trends. José Antonio Fernández, Executive Director of Proximity and Health at FEMSA, noted a clear decline in consumer sentiment that began mid-last year, coinciding with the electoral cycle, a pattern that he observed consistent with prior election years.
The analysis of the companies also indicated that 35.7% of executives believe that proposed tariffs by the United States on some commercial partners effective from early 2025 could lead to negative repercussions. Diego Gaxiola, Chief Financial Officer of Grupo Bimbo, articulated concerns regarding how such tariffs might not only influence inflation but also affect consumer habits and disposable income.
Enrique Escalante, CEO of Cementos Chihuahua, reported that the volumes of products handled by the company between January and March 2025 experienced further decline due to a slowdown in the industrial sector, particularly along the border. He highlighted that stakeholders remain cautious due to uncertainty regarding macroeconomic policies related to transportation tariffs and an oversupply of industrial buildings resulting from past construction surges.
Looking ahead, Luis Félix, General Director at Becle, the parent company of José Cuervo, stated that they expect to encounter continuous challenges, including price competitiveness and inflationary pressures in the United States attributed to rising tariffs on many imported goods. Additionally, 33.3% of CEOs reported increased labour costs, as well as higher expenses related to freight and maintenance. A significant portion of leaders—31.0%—expressed concerns regarding negative impacts stemming from economic slowdown, 23.8% linked to geopolitical issues, and 19.05% citing adverse weather conditions.
Pablo González, Executive Director of Kimberly-Clark, summarised the environment as complex, noting economic indicators suggest a deceleration in both the economy and private consumption. He pointed out that while there are still strong sectors, there are signs of divergence particularly evident in consumer operations within the U.S.
Finally, approximately 11.0% of the companies reported facing investment challenges, with Lorenzo Berho, CEO of Vesta, sharing insights about how volatility and ambiguity are hindering decision-making processes across various industries, particularly regarding long-term commitments. He observed that most conversations indicate a reluctance to adjust investment expectations in light of tariffs or regulatory risks.
Jacobo Rodríguez, a financial specialist at Roga Capital, characterised the earnings report season as mixed, noting that while some sectors exhibit resilience, there are divergent signals particularly in the consumer segment, especially for firms operating in the United States. He highlighted the emergence of net margin pressures stemming from increased costs, reflecting the complex economic landscape that companies are navigating.
Source: Noah Wire Services
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